Toss’s International Expansion
In a significant move marking its first international foray, the South Korean fintech company Toss has unveiled plans to launch a comprehensive finance superapp in Australia later this year. The announcement, reported by Reuters, comes as Toss prepares to introduce a stablecoin pegged to the Korean won, pending regulatory approval in South Korea.
CEO’s Vision and Market Strategy
Toss’s CEO, Lee Seung-gun, emphasized the firm’s confidence in expanding its innovative model beyond South Korea, where the startup has successfully amassed over 30 million users since its inception in 2015. Lee asserted,
“We have demonstrated our ability to compete against well-established players in Korea, and we believe that a similar approach can be applied globally, particularly in markets where consumers manage numerous banking relationships and fintech applications. Our goal is to streamline this into a singular, user-friendly platform.”
Opportunities in Australia
The Australian launch is not just a standalone effort; Toss is eyeing further opportunities in international markets. To this end, the company has already established a local subsidiary in Australia and is set to roll out key features like peer-to-peer (P2P) money transfers by the end of the year. The fragmented nature of the Australian banking landscape, along with supportive open banking regulations outlined in Australia’s Consumer Data Right (CDR), positions Toss advantageously as they aim to simplify financial management for users, many of whom hold an average of 2.4 bank accounts, according to ABC News.
Australia’s New Payments Platform (NPP), which facilitates instantaneous peer-to-peer transactions, further enhances Toss’s prospects, aligning with their business model designed for swift, user-friendly money transfers.
Stablecoin Development in South Korea
On the home front, Toss is actively preparing to launch its Korean won-backed stablecoin, which is contingent on forthcoming regulatory frameworks expected from South Korea’s Financial Services Commission. Lee expressed assurances regarding this initiative, stating,
“We will issue and distribute won-based stablecoin – that I can say for sure,”
with discussions already underway with local regulators.
This regulatory guidance is anticipated to be finalized, as the Commission plans to implement regulations concerning the won-pegged stablecoin by October. Other notable entities in the space include the banking division of Kakao Corporation, which is also pursuing a similar stablecoin initiative. The recent upswing in major South Korean banks’ stock prices, following trademark filings related to stablecoins, indicates a rising institutional interest in digital currencies. Prominent banks involved in the movement include Kakao Bank, Kookmin Bank, and the Industrial Bank of Korea, all of which have shown increasing activity in response to the regulatory atmosphere, especially since the election of President Lee Jae-myung, who campaigned on a platform favorable towards cryptocurrencies including the launch of a won-pegged stablecoin.
